Credit Agencies' Scores Aren't That Great

THE COLOR OF MONEY

You know the three major credit bureaus that grade all of us consumers on how well we handle our credit? Well, I think it is high time we graded them on how well they deliver their services.

So I recently reviewed the newest consumer product offered by Equifax, Experian and TransUnion -- a customized credit score and analysis.

A credit score is a three-digit number (generally ranging from 300 to 850) that is generated using information in a person's credit file. The higher your score, the better credit risk lenders think you are. Until recently, most people couldn't even see their credit score. Pressure from consumer groups and public officials helped push the bureaus to give people access to their scores.

Here's what I thought of the quality of the credit-score information offered by the three credit bureaus. I ranked them on a scale of 0 to 100:

Equifax's credit-score service is called Score Power. You can order it online at www.myfico.com or www.equifax.com. Equifax teamed up with Fair, Isaac and Co., which developed the FICO credit-score model most widely used by lenders. For $12.95, you get a copy of your credit report and a credit score with a supposed personalized analysis.

I was quite disappointed by what they consider personalized.

Each borrower does get assigned numerical codes based on their credit profile. But consumers with the same code get the same boilerplate explanation.

And, despite touting Score Power as the "one credit score that almost all lenders use," Fair, Isaac has a disclaimer that says "it's unlikely that a lender would use this credit report or score in considering a credit application." That's because most lenders will want to get a fresh credit report and credit score. Still, Score Power is the closest of the three to the one lenders use and for that reason alone I begrudgingly recommend it.

Equifax's score: 75.

Experian (www.experian.com) calls its service Scorecard. The service is only available online.

Experian developed its own scoring model using similar but not the same factors that the Fair, Isaac model uses. The credit score Experian sells to consumers for $12.95 is based on its own proprietary model.

If you want a truly personalized credit-score analysis, Scorecard does deliver on its promise. With Scorecard you get a copy of your credit report and a detailed list of the exact accounts that are negatively and positively affecting your score.

Scorecard offers a number of very helpful features, including a debt-to-income analysis that gauges your debt load relative to your gross monthly income.

Experian's score: 89.

TransUnion (www.transu nion.com) doesn't bother with a brand name for its credit score service. I guess that's because it is pretty much bare bones. TransUnion's score analysis consists of a brief section listing the factors that are lowering your credit score. The information is not very helpful.

But the price is right. TransUnion doesn't charge extra to release a credit score. You can get it by telephone, online or through the mail.

TransUnion's score: 72.

Overall, there's lots of room for improvement in all the services.

I'm happy the veil of secrecy has been lifted where our credit scores are concerned. But as the saying goes, "the devil is in the details."